Paper 1 Part 5: Business Conduct & Client Relationships

Under the Code's (September 2023 version) recordkeeping requirements for share transfers, the 'description of the transfer' must include which of the following?

• AOnly the stock code and transaction price
• BOnly the stock name and transfer date
• CStock name and stock code, quantity transferred by the licensed/registered person, transaction quantity, share transfer date, transaction price per share and transaction date
• DOnly the transferor's name and mailing address

ABC Securities Ltd, a licensed corporation, is designing its internal control framework. Under the Code's requirements on staff appointment and supervision, which of the following practices complies with the Code?

• AAppoint persons without relevant professional qualifications to conduct client business, as long as compensation is lower
• BConduct supervisory review only once at year-end
• COutsource all supervisory duties to a third party and bear no further responsibility
• DEnsure persons appointed to conduct client business are qualified to act in such capacity and possess relevant professional knowledge, and diligently supervise persons employed or appointed